Rivian Vehicles 'Resonate With Customers,' But... This Analyst Is Revising His Forecast
Portfolio Pulse from Priya Nigam
Rivian Automotive Inc (NASDAQ:RIVN) shares dropped significantly in premarket trading after reporting lower-than-expected Q4 earnings. Despite exceeding 2023 production targets, analyst Chris Pierce from Needham has revised his forecast for Rivian due to uncertainties around 2024 R1 production and demand concerns. Pierce maintained a Buy rating but lowered the price target from $22 to $18, citing increased demand concerns and the complexity of the R1 line shutdown and re-ramp as overhangs.
February 22, 2024 | 3:47 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Rivian Automotive Inc's shares fell by 18.97% in premarket trading following a disappointing Q4 earnings report and revised forecasts due to uncertainties around 2024 R1 production and demand concerns.
The significant drop in Rivian's share price is directly attributed to the lower-than-expected Q4 earnings and the revised forecast by analyst Chris Pierce, highlighting uncertainties around 2024 R1 production and demand. The reduction in the price target from $22 to $18 by Pierce, despite maintaining a Buy rating, signals a cautious outlook on Rivian's short-term performance, particularly concerning its ability to meet production and demand expectations.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100